TRENTON – Four Two-River area municipalities have received funding from Community Disaster Loans through the Federal Emergency Management Agency (FEMA).
The low-interest loan program helps eligible jurisdictions that have suffered substantial revenue losses from a major disaster to perform their governmental functions.
The area jurisdictions receiving loans are:
Borough of Atlantic Highlands, $2,108,876;
Borough of Little Silver, $1,829,324;
Borough of Oceanport, $1,154,931;
Borough of Sea Bright, $1,297,273; and
Loans cannot exceed 50 percent of a jurisdiction’s operating budget for the year in which the disaster occurs. The maximum loan is $5 million. Jurisdictions must demonstrate the need for assistance to perform government functions. The term is five years but can be extended to 10 years if the applicant chooses. Interest on the loans equals the rate for five-year maturities determined by the U.S. Secretary of the Treasury on the day the note is executed.
In response to Super Storm Sandy, Congress allocated additional funds to the Disaster Assistance Direct Loan Program Account. At the request of Gov. Chris Christie, FEMA activated the program in New Jersey.
“Community Disaster Loans are based on need to bridge the revenue gap so local governments are able to continue to operate after a disaster,” FEMA Federal Coordinating Officer Gracia Szczech said. “Loans are for local government operating expenses such as salaries of police, firefighters and teachers while the community recovers.”
The loans cannot be used as a cost share for any federal grants or for capital projects.